Over the years, the retail industry has grown immensely as it continues to adapt and embrace digital transformation. The increasing popularity of e-commerce, or online shopping these days, makes day-to-day operations even busier than usual, especially when it comes to keeping a closer eye on business financial information.
While it’s crucial for any type of business to keep an accurate and up-to-date record of all their transactions, the retail sector is often more complex and faces unique challenges in terms of bookkeeping, maintaining proper financial statements, and handling taxes.
With a higher volume of transactions they process on a regular basis, such as sales, purchases, payroll, bank entries, inventories, and so on, retail businesses are undoubtedly having difficulty managing all of these at the same time.
To take a closer look, here are some of the most common accounting challenges that retail businesses encounter on a daily basis:
📌 Poor tax compliance
Many retailers are having trouble keeping pace with these fast-changing tax regulations, causing them to miss their tax obligations or fail to pay proper returns on time.
📌 Cash flow mismanagement (payable and receivable accounts)
Maintaining a positive cash flow, keeping track of invoices, and culminating with the receipt of payments have become laborious tasks, especially without automation.
📌 Inconsistent reconciliation of financial statements
Some retailers don’t regularly produce reports due to its tedious process. Thus, the revenues and expenses are not managed meticulously, which increases the possibility of irregularities.
📌 Inefficient payroll processes
Conventional payroll processing includes a great deal of paperwork which is more vulnerable to errors and fraud that could eventually lead to hefty penalties.
📌 Improper inventory management
The lack of quality and fully optimized inventory management system makes it harder for retail businesses to track, record, and calculate inventory costs.
📌 Unorganized paperwork/ unreliable data storage
Retailers usually keep all their paperwork in a secure area however, it still doesn’t guarantee safety as manual documents are prone to damage and loss.
Quite overwhelming, right? While these may seem daunting, there are proactive measures that a retail business can take to mitigate the risks of these challenges. Fortunately, retailers don’t have to go far to come up with solutions! JuanTax Plus is at their service to make bookkeeping and tax compliance processes more manageable for retail businesses with its cloud-based solutions!
How can JuanTax Plus help Retail Businesses?
✅ Automated Books of Accounts
Tracks retail business sales, expenses, payables, receivables, and other financial information in an automated ledger or journal.
✅ Timely Financial Reports
Get an accurate, insightful, and real-time depiction of your retail business’ financial health in just a few clicks.
✅ Accurate Tax Preparation
Experience seamless and accurate filing and payment of taxes online directly to the BIR.
✅ Experienced and professional support and training for accounting concerns
Ensure that taxes and bookkeeping are done correctly with its reliable chat support and accessible self-learning online courses for FREE
✅ High level of cyber security with MFA functionality
Activate and use multi-factor authentication to implement a stricter level of security to the transactions and information while using or storing data on the platform.
At JuanTax, we assist retail businesses in understanding accounting roadblocks as well as easily streamlining all of their operations, allowing them to save time and effort while focusing more on their core business aspects.
Reach out to us and learn more about JuanTax and its end-to-end solutions. Sign up now for FREE!
